Indiana Public Media News

Terre Haute Paper Mill Scheduled To Close

Posted May 25, 2007

The president of the Terre Haute Economic Development Corporation says he still has hopes that the city’s International Paper mill could be sold to another company. International Paper informed employees Wednesday afternoon of their plans to close the containerboard mill toward the end of 2007.

THEDC president Steve Witt says the plant’s manager Jeff Brown sits on the organization’s board of directors, and they have hopes that the city, perhaps in conjunction with the state, could offer a potential buyer an effective incentives package.

International Paper spokesperson Amy Sawyer says every effort was taken to save the 90-year-old mill from closure. She says its small size made it unprofitable to keep, and impossible to sell. She says expansion was also not an option.

The plant currently employs 170 people. Witt says many of the mill’s local material suppliers will also be hurt by the closure. Sawyer says full-time employees will be offered some form of severance pay with benefits, but the specific details have yet to be worked out with union representatives.

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